The Shree Cement Ltd board has approved the acquisition of a 100% stake in private railway siding operator Raipur Handling and Infrastructure Pvt. Ltd for Rs 59 crore ($8.8 million) in an all-cash deal, the company said in a stock exchange disclosure.

The final deal value will be subject to closing adjustments, the company said, adding that the acquisition will help Shree Cement better manage transportation of goods on the railways network. The commodities handled by the freight terminal include coal, iron ore, TMT bar and bauxite.

The acquisition is also subject to approvals from the railways authorities, and is expected to be completed within three months from the date of the execution of a definitive agreement.

Incorporated in 2004, Raipur Handling and Infrastructure owns and operates a railway siding at the private freight terminal at Hathbandh station in Raipur, which is close to Shree Cement’s plant at Baloda Bazar in Chhattisgarh. The target company’s turnover was at Rs 2.55 crore in the year through March 2017.

In 2017-18, Shree Cement’s consolidated revenue from operations stood at Rs 10,159 crore and net profit was at Rs 1,384.15 crore. The company produces 29.3 million tonnes of cement per annum (MTPA) and 607 megawatts of power as of 31 March 2017.